By Nicole Kivel, Managing Director UK, Criteo
Three out of four shoppers say ecommerce has lost its spark. It’s efficient and convenient – but exciting? Not so much.
According to recent findings in The Spark of Discovery report, online shopping has lost its spark, signalling an emotional gap between consumers and the shopping experience. For brands, the message couldn’t be any clearer: if you don’t bring back the excitement of shopping, you may risk losing engagement.
Right now, many brands find themselves at a crossroads. On one hand, they’ve mastered the art of efficiency – fast shipping, smooth checkouts, and endless product choices. But somewhere along the way, they’ve traded wonder and discovery for convenience.
The challenge is to reignite that sense of discovery and emotional connection that once made shopping feel like an enjoyable experience. And there is a real opportunity here, discovery-driven strategies are deemed effective by almost all brand leaders (98%), with 80% attributing them to brand growth.
Achieving this requires a shift in approach, one that blends innovation with authenticity. This involves three strategies: building genuine emotional connections, offering experiences that spark curiosity and joy, and harnessing the evolving power of retail media and AI to drive more meaningful interactions.
Why the shopping experience is falling short
Transactional relationships are impacting the shopping experience. Today, consumers expect more than just a seamless checkout, they want to shop with brands that truly understand them and provide experiences that foster discovery, excitement and loyalty.
Despite this, three quarters (76%) of consumers find online shopping to be an ‘unexciting experience’ and one that lacks in surprise or delight.
To bridge the gap between awareness and conversion, brands need to create emotional connections from the very first touchpoint, turning transactions into memorable moments that feel personal and intuitive.
Reaching and engaging consumers in the discovery phase is more challenging than ever, which is why a full-funnel approach, one that combines upper-funnel storytelling with lower-funnel conversion tactics, is essential.
Realising the potential of retail media
Retail media is a powerful strategy that allows brands to engage with consumers throughout the shopping journey, from the initial point of discovery right through to conversion. By tapping into first-party data from retailers and placing ads directly within shopping environments, brands can connect with consumers in a highly targeted, considered way.
Retail media not only supports performance marketing goals but also provides valuable insights into consumer behaviour. These insights are highly deterministic, providing accurate predictions about what a shopper will buy.
This enables brands to fine-tune and tailor their campaigns to ensure they are reaching the right shopper with the right content in the right moment. By minimising guesswork, brands can improve experiences and build more meaningful engagement.
This is particularly important in today’s retail landscape, where half (54%) of consumers feel it’s important to get a feeling of joy when they shop online, and 39% say engaging ads make them feel positively towards a brand. One powerful way to do this is by integrating immersive video experiences directly into digital shopfronts through Onsite Video, bringing storytelling and commerce together in the exact moment when shoppers are ready to engage. This enables brands to engage high-intent shoppers with dynamic, emotionally resonant content and inspire purchases – right at the point of discovery.
Reigniting the spark of discovery with AI
AI is creating even more opportunities for brands to anticipate consumer preferences, tailor content, and elevate creatives. In fact, our report shows 77% of brands will be leaning on AI tools to remove some of the guesswork when it comes to discovery and 83% will use AI tools to improve the consumer experience.
AI is bridging the relationship between brands and consumers by using data processing and automation to deliver personalised content and experiences. From messaging to images and video, AI is transforming the way advertisers can foster creativity, innovation and differentiation. It enables advertisers to leverage data and optimise ads in real-time. For audiences, this is impactful and effective. For brands, this enables the fast and easy creation and scaling of ad formats.
Plus, with a third of shoppers (36%) noting that the ‘unexpected find’ is missing from online shopping experiences, AI can make a real difference. This technology is often used during the discovery phase of the shopping journey to tailor product recommendations; these smart suggestions are fuelled by predictive insights based on commerce data. This can improve the overall shopping experience, with relevant, timely and engaging moments of discovery.
The future belongs to emotionally intelligent advertising
The future of retail lies in the intersection of technology and emotionally intelligent advertising. By harnessing the power of AI and retail media, brands can create personalised, discovery-driven, and emotionally resonant experiences. Rekindling the joy of shopping and building lasting relationships with customers will not only help drive sales but also foster a sense of brand loyalty and advocacy that extends far beyond the transaction.
